Not true. When you do the math, you actually tend to make more from commissions than profit split, hence as long as the trader is not a loss to the firm, it does not matter if he/she makes money.
The math does not work for profit splits in US equity daytrading, that's why every firm ended up going toward commissions, with the weaker ones turning to the churn & burn way of doing business. Otherwise guys that get good, want their full profit and leave. It's just not there to split profits, it's like trying to get water out of a stone.
I think that deserves respect and I commend any firm that tries to that. Although I only know of one firm who put their money behind their extensive training, which leads into my next response.
Let's make something clear. FNYS is in a league of its own. They pay a REAL salary for 12-18 months, not a measly 2k a month draw for a few months that Chimera tries to boast. I don't think you guys pay anything, correct me if I am wrong.
At FNYS you don't even get to put on a trade for at least 12 months, no matter of your background. They don't aim for money everyday daytrading, they aim for weekly and monthly profits.
The difference between FNYS and your firm, as well as the other ones you mentioned, is that FNYS puts their money where their mouth is. They will pay you a salary to train for at least year. They pay you to NOT trade and truly learn what they do, as well as do back-office to support their traders. At FNYS they would rather pay you a salary for an extra few months to make sure you fully get it rather than send you to produce after a year. Hence they get the respected reputation & the best applicants.
Are you willing to pay a real salary for 6 months while your trainees learn and NOT trade? While they get comfortable deciding what best suits them, play with simulator and papertrade? I truthfully doubt it.
The reality is that your business model is not much different from what Worldco and many others were doing back in 2002-2003. The real difference is that they taught a simple gimmick or two which were a lot more lucrative with less risk than what the current environment offers.
Frankly, the show is a joke based on its first season. And from what I saw so far, the joke keeps growing.
I don't see why you guys are proud to be on it.
word!
